U.S. ECI Preview U.S. ECI Preview: The Q2 employment cost index is out Friday and should reveal a 0.6% (median 0.6%) headline increase q/q. This follows a 0.7% increase in Q1 and a 0.5% headline in Q4. This would leave the headline up 2.4% y/y. Analysts expect wages to increase 0.6% and benefits to be up 0.8% q/q with respective y/y increases of 2.5% and 2.4%.

U.S. equities are split with the NASDAQ higher U.S. equities are split with the NASDAQ higher and the blue chips lower as the tech index has about a 0.18% lead and the chips are down less than 0.1%. Europe closed marginally higher as the Euro Stoxx 50 climbed 0.23%, but the CAC and FTSE paced gains just shy of 0.6% apiece - shrugging off the IMF board hinting at not taking part in the Greek debt deal without a haircut. Biggest movers in the Dow to the upside were UT +1.7%, Microsoft +1.1% and CAT +0.8%, while the deepest shakers on the downside were P&G -3.3% (earnings miss), UnitedHeath -1.4% and GE -0.5%. The 2.3% rebound in Q2 GDP was shy of expectations, but perhaps that was for the best in terms of the Fed outlook. Since the volume of ETF trades of $18.2 tln over the last 12-month eclipsed U.S. GDP at $17.4 tln with the S&P 500 SPY capturing a thrid of that total, perhaps analysts're watching the wrong thing, according to Bloomberg.

FX Action: USD-JPY was pushed back from its 124.58 highs FX Action: USD-JPY was pushed back from its 124.58 highs, the best since June 10, with reports of Japanese offers in place up to the 125.00 level. The Japan economic calendar is heavy tonight, where focus will be on inflation numbers in particular. A downside miss there is likely to see the yen fall further, as the chances for further BoJ stimulus increase. Analysts continue to target the June multi-year peak of 125.85.

Treasury announced a $48 B 3- and 6-month bill sale for Monday Treasury announced a $48 B 3- and 6-month bill sale for Monday. The size remains unchanged. Supply lightens next week with just bills on the calendar to kick off August.

10:35 EDT

Bloomberg's consumer comfort index sank to a 5-month low Bloomberg's consumer comfort index sank to a 5-month low of 40.5 for the week ended July 26 compared to 42.4 previously in a report earlier, as the personal finance subcomponent dove the most in 10-months to 54.9 from 57.8. Buying climate fell a point to 36.2, with both the poorer and wealthier camps taking the deepest hits to sentiment compared to more upbeat middle income households. In regional terms, the Northeast suffered the most since May 2014, while the West showed the only increase. The report indicated that further job gains were needed after the benefit from falling gasoline prices "ran its course", dovetailing with the July plunge in consumer confidence reported on Tuesday. This may have added to bearishness on stocks on the margin earlier, but both stocks and yields appear to be gaining traction now from lows.